Wow! What another exciting week for day traders! “The tweet heard round the world,” some may say. Follow along as we discuss how the United States’ trade war with China and now Mexico, is affecting the trading sessions.
Last Thursday evening, while trading the Asian session, I entered what I thought would be an overnight day trade. So you can imagine my surprise when I exited the trade after just a few short minutes. At first I thought I had missed a high impact news release, (I am a dad of a one-year-old, who is now walking, and a puppy – life does get crazy!) But after double and triple checking my news calendar on ForexFactory.com, it was confirmed, there were no news events at the time.
After deciding to check Twitter, I finally realized what the panic was all about. President Trump announced the United States would be putting tariffs on Mexico if Mexico does not stop the illegal immigrants crossing the border from their country into the United States. Traders around the world started selling the S&P futures quickly. Within minutes the S&P futures had dropped over 20 points.
As President Trump sent out his tweet at 7:30 pm on May 30, 2019, I was already in a position to win. I didn’t get to this position because I knew what he was about to Tweet, but rather because I was following a rules-based approach with my trades. Some may still try and claim my day trade was just the result of luck. However, those of you that have followed me for any amount of time know that I always analyze the markets the same way. When day trading and swing trading the markets, I follow a rules-based approach that is not subjective.
Make sure to watch this week’s video to see all the details of my day trade in action. I will also explain how I analyze the markets each day and night before I ever place a single trade.